It is reported that Chinese local CRC price decrease ceased this week and it is expected to level off or seen some rebound.
On Shanghai market, 1.0mm CR sheet by Anshan steel goes at CNY 4000 per tonne down by CNY 100 per tonne from last Friday; 1.2mm to 2.0mm material at CNY 3850 per tonne a decrease of CNY 100 per tonne. While that for 1.0 CR coil by Maanshan steel are down by CNY 100 per tonne to CNY 3650 per tonne.
As forecast, 1.0mm CRC price in Shanghai has reached our target of CNY 4000 per tonne. Taking Shanghai price for 1.0 sheet by Anshan steel as benchmark, it is going to see upward adjustment as long as it remains above CNY 4000 per tonne. Otherwise, there would be further slip.
Export offer for DC01 1.0mm CRC goes at about USD 600 per tonne FOB which compares with USD 620 per tonne to USD 650 per tonne FOB early this month. Steel makers probably would lower quotation again taking into account further substantial drop in domestic market price and sluggish demand.